The Study of Investment Motivation and Managerial Problems of Taiwanese Companies in Cambodia

Abstract

Due to the increasing competition from China and Southeast Asia countries, many Taiwanese companies have to invest in a foreign country in order to maintain a competitive advantage. However, the risk in foreign investment is much higher than in domestic investment because most of the companies are not familiar with the situation and culture of the foreign country. Therefore, the company has to be caution in making a foreign investment decision. The objective of this study is to investigate the investment motivation and managerial problems of Cambodia’s Taiwanese companies by using the questionnaire method. The methodology used in this study is a questionnaire approach. Totally 46 valid replies from companies were received. The results showed that motivations for more than half of Taiwanese companies are no exchange control and developing market. The major problems faced by Taiwanese companies are: poor administrative efficiency, insufficient infrastructure, insufficient power supply and high cost, difficulty in managing employees due to cultural differences. Hopefully, the result of this study can be used as a reference for Taiwanese companies seeking investment in Cambodia. More updated information is needed in further research to compare the current and earlier situations.